BILL ANALYSIS Ó AB 2231 Page 1 Date of Hearing: June 20, 2012 ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT Cameron Smyth, Chair AB 2231 (Fuentes) - As Amended: May 31, 2012 SUBJECT : Sidewalks: repairs. SUMMARY : Prohibits the repeal of a local ordinance placing responsibility for sidewalk repair on a city, county, or city and county unless the repeal is subsequently ratified by a majority vote of the public. Specifically, this bill : 1)Requires that if a city, county, or city and county (hereinafter, city or county) has an ordinance requiring that city or county to repair sidewalks, a repeal of that ordinance shall become effective only if the repealing ordinance is approved by a majority of voters in a consolidated or general election. 2)Makes findings and declarations that these provisions constitute a matter of statewide concern, and shall therefore apply to charter cities and charter counties. Such provisions shall supersede any inconsistent provisions in the charter of any city or county. EXISTING LAW : 1)Requires the owners of lots or portions of lots fronting on any portion of a public street or place to maintain any sidewalk in such condition that the sidewalk will not endanger persons or property and maintain it in a condition that will not interfere with the public convenience in the use of those works or areas, except as to those conditions created or maintained by persons other than the owner. 2)Requires the superintendent of streets, as defined, to provide specified notice to the owner or person in possession of the property fronting on that portion of the sidewalk out of repair or pending reconstruction, to repair the sidewalk. Under existing law, if the repair is not commenced within two weeks after the notice has been provided, the superintendent of streets shall make the repair and the cost of the repair shall be imposed as a lien on the property. AB 2231 Page 2 3)Requires voter approval in order for a number of actions to take place, including: a) An amendment to the Constitution; b) The establishment or increase in various types of local taxes or fees; c) The issuance of certain bonds; d) The establishment of certain special districts; and, e) The sale of a public utility. FISCAL EFFECT : According to the Assembly Appropriations Committee, if the Commission on State Mandates determines that this bill is a reimbursable mandate, the state will be liable for the costs of the election and sidewalk repairs required to be made between the decision to seek the election and the actual election date. COMMENTS : 1)This bill would prohibit the repeal of a local ordinance requiring a city or county - including charter cities and charter counties - to repair sidewalks unless the repeal is ratified by a majority vote of the public before it takes effect. This could potentially prevent cities like Los Angeles with such ordinances from shifting financial responsibility for sidewalk repairs onto adjacent property owners should the city council vote to do so. This measure is author-sponsored. 2)Under current law, the responsibility for repairing sidewalks resides with the owner of the adjoining property, unless the dangerous condition was created by another person. The locality's superintendent of streets is empowered to notice the adjoining property owner of the damage, and if it remains unrepaired after two weeks, the city or county may commence repairs and impose the cost as a lien on the property. Legal liability for injuries caused by a broken sidewalk will differ based on the individual circumstances. The author states that "in October 2011, the Los Angeles City Council angered homeowners by considering a plan to repeal a AB 2231 Page 3 1974 ordinance that made the city responsible for sidewalk repair. For the last 30 years, the City assumed responsibility for most sidewalk repairs, but has not maintained the sidewalks or the trees. Almost half of L.A.'s sidewalks are in some state of disrepair, mostly due to tree roots pushing through concrete and causing cracks." The author's office has identified seven cities that it believes have sidewalk ordinances that may be affected by the provisions of this bill: Los Angeles, Oakland, Berkeley, Half Moon Bay, Placentia, Burlingame and Redlands. 3)According to a November 2011 Los Angeles Times article, the City of Los Angeles voted to assume responsibility for sidewalk repair in 1973, allocating $2 million for the work. Federal money for that work ran out in 1976. Since 2000, the city has spent about $95 million to replace 550 miles of sidewalk. According to an October 20, 2011 report by the Daily News, the City of Los Angeles has nearly 11,000 miles of sidewalks, about 4,700 miles of which still need repair. The Los Angeles Times reports that it can cost roughly $250,000 to $300,000 to repair a mile of sidewalk. According to a Daily News article dated October 20, 2011, between "$4 million and $6 million is spent İby the City of Los Angeles] every year on liability claims, and the total cost estimate to repair the sidewalks İin Los Angeles] is between $1.2 billion and $1.5 billion." A bond measure to fix the city's sidewalks was put before the voters in 1998, but was rejected. A May 2010 article by the Los Angeles Times stated that "the city spends $3 million to $5 million a year" to defend or settle cases arising from sidewalk-related "trip and fall" injuries. Beginning in 2010, the Los Angeles City Council began considering a variety of proposals for addressing the backlog of broken sidewalks, including a requirement on home owners to make repairs, as well as requiring repairs as a condition to the close of escrow when a home is being sold, and continuing the current policy of making temporary repairs using asphalt. According to the author's office, the city council has not yet taken action on this matter, but public discussion and debate over the matter continue. AB 2231 Page 4 4)An earlier version (February 24, 2012) of this bill was heard in the Assembly Local Government Committee on April 18, 2012, where it was approved on a 7-0 vote. That version shifted financial responsibility and legal liability for sidewalk repairs to the relevant locality while prohibiting special assessments for costs, but contained no voter ratification requirement. After being amended on April 23 to delete the shift in legal liability to local governments, and further amended on May 25 to replace the shift in financial responsibility with the voter ratification requirement, the measure passed out of the Appropriations Committee suspense file. The measure later failed passage on the Assembly Floor on May 30, 2012. After reconsideration was granted, the bill was amended to remove the prohibition on assessment and re-referred back to the Assembly Local Government Committee pursuant to Assembly Rule 77.2. 5)According to the author, "AB 2231 simply ensures that the public has a say if İc]ities or İc]ounties are trying to change their ordinances on sidewalk repair and make homeowners foot the bill. Particularly during difficult economic times, it seems that local governments are putting an undue burden on homeowners, by trying to pass on the financial responsibility for damage caused by trees that were often planted by the government." The California Association of Realtors supported an earlier version of the measure, contending that "California's older neighborhoods are suffering from high levels of sidewalk disrepair due to trees planted by local governments?AB 2231 (Fuentes) rightfully stops local governments from shirking responsibility for these sidewalks and protects property owners from huge repair and legal costs for damages they did not produce." 6)The League of California Cities and the California State Association of Counties oppose the current version of the bill primarily because of its impact on local financial decision-making: "Local governments make every attempt to fund sidewalk repair, and have used a variety of funds to pay for sidewalk repair including redevelopment funds, federal Community Development Block Grants, gasoline tax revenues, and Safe Routes to Schools programs. Unfortunately, all of these AB 2231 Page 5 funds are either obsolete or in jeopardy of significant cuts. If cities and counties are unable to find another solution, which sometimes may include updating an ordinance or asking property owners to share the cost of repair, sidewalks will simply remain in a state of disrepair?The ability for city councils and county boards of supervisors to decide how best to balance infrastructure needs is absolutely critical given shrinking resources available to local governments." The City of Los Angeles opposes the bill in its current form, stating "İs]idewalk repair is clearly a matter of local concern and should remain so. This measure disrupts the local legislative process and substitutes the state's legislative interests. The City of Los Angeles has a deficit of $238 million and its budget is already extremely limited?While well-intentioned, AB 2231 would tie our hands by making it difficult for us to address the ongoing issue of deferred maintenance on sidewalks by enacting unnecessary restrictions in state law." 7)It should be noted that, because the voter ratification required by this bill applies only to the repeal of a sidewalk repair ordinance, amendments to an existing ordinance that fall short of outright or constructive repeal may not require voter approval. 8)The Committee may wish to ask the author to address the policy justification for imposing a voter ratification requirement on what has traditionally been a matter of local concern. As noted above, California requires voter approval of legislative action in limited cases, such as constitutional amendments, creation or increase of certain taxes or fees, bond issuances, establishment of certain special districts, and the sale of a public utility. The Legislature also previously considered a measure İAB 2892 (Swanson)] in 2008 that would have imposed a two-thirds voter ratification requirement on any state decision to spray an aerial pesticide in an urban area. The Agriculture Committee analysis for that bill noted that "İs]ubjecting rational government action to a direct vote of the people will make it very difficult to respond in a timely manner. It will also set a legislative AB 2231 Page 6 precedent that could lead to other direct democracy decision-making." The Committee may wish to discuss whether or not the imposition of a local ratification requirement for sidewalk repair is in keeping with its understanding of the municipal affairs doctrine, and whether or not it sets a precedent for imposing similar requirements in other areas of local decision-making. 9)In 2008, the Assembly Local Government Committee heard AB 1985 (Strickland), which would have repealed current laws regarding sidewalk repairs, and held liable the owner of the property on which the sidewalk is located for all repairs and maintenance of the sidewalk. That bill failed passage (2-5) in the Committee on April 9, 2008. 10)This bill is keyed a state mandate which means that if the Commission on State Mandates deems this a reimbursable mandate, then the state could be responsible for the local election costs associated with this bill. 11)Support arguments : According to the California Business Properties Association, "AB 2231 will simply assure that before a local government can shift the responsibility onto private property owners, those that are being asked to bear the new costs of liability, have a chance to voice their opinion about the shift in policy." Opposition arguments : According to the League of California Cities, "İt]his bill creates a dangerous precedent, undermines the role of city councils and county boards of supervisors, and creates a disincentive for local governments to assist with the costs of sidewalk repair." REGISTERED SUPPORT / OPPOSITION : Support Apartment Association, California Southern Cities (current version) California Business Properties Association (current version) AB 2231 Page 7 East Bay Rental Housing Association (current version) NORCAL Rental Property Association (current version) Silver Lake Neighborhood Council (current version) California Association of Realtors (2/24 version) California Apartment Association (2/24 version) Opposition California State Association of Counties (current version) City of Camarillo (current version) City of Concord (current version) City of Lakewood (current version) City of Los Angeles (current version) City of Palmdale (current version) City of Rancho Cucamonga (current version) City of Torrance (current version) League of California Cities (current version) City of Burbank (2/24 version) City of Pasadena (2/24 version) City of San Jose (2/24 version) City of Sunnyvale (2/24 version) County of San Joaquin (2/24 version) County of Ventura (2/24 version) Glendale City Employees Association (2/24 version) Organization of SMUD Employees (2/24 version) San Bernardino Public Employees Association (2/24 version) San Luis Obispo County Employees Association (2/24 version) Santa Rosa City Employees Association (2/24 version) Analysis Prepared by : Hank Dempsey / L. GOV. / (916) 319-3958